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Published on October 11, 2007

 After one year and three months at Starbucks, Felix Michael has just about learned how to do things differently.

He is managing director in Thailand of the Seattle, Washington-based chain of premium-coffee houses. But before he stepped into his present post, he was senior general manager for operations at KFC in Malaysia, and he had worked for the quick-service fried-chicken chain for about 19 years.

Since joining Starbucks Coffee in June 2006, he has learned a different approach to running a chain-style operation and satisfying his customers.

"I thought it was a good opportunity, because Starbucks offered me a good job. I'd been a loyal Starbucks customer for at least three or four years. Caramel Machioto is my favourite drink. At that time, I never imagined I'd be working for Starbucks one day," he says.

His first taste of the new job was being sent to the company's training programme in Seattle.

"I have learned many things from Starbucks, mostly about managing people," he says. "The company treats its staff as business partners and its most valuable assets."

He recalls that his experience with KFC in Malaysia involved managing the entire business - not only people, but also other resources, such as money, management tools and working processes. But at Starbucks, the business is quite different.

While other quick-service restaurants focus on promoting their products and service, Starbucks begins with people and its partners: the staff. The working atmosphere is created by passionate partners, and they play a significant role in the company's success.

"We [Starbucks] always talk about being in the people business, serving coffee," Michael says, adding that the company's success came from its different way of working, which focuses on its partners, its customers and its coffee farmers.

"We actually say that two things make the company successful: coffee and partners. We sell the best coffee, as well as the Starbucks experience, in which customers come for a great cup of coffee, stay for the environment and always return because of our human connection," he says.

In keeping with its mission, the company strives to make Starbucks the best place to work for all employees.

Starbucks (Thailand) currently employs more than 900 employees, or "partners", as they are called. They are encouraged to inspire each other in order to inspire the customers. There is a close connection between partners and between partners and management, as they learn from each other.

"I want our partners to be proud that they are working at Starbucks and to feel inspired in their work for Starbucks, because they work for a company that helps them make a difference. I also want our customers to be happy about their Starbucks experience. We try to create a 'third place' environment for them, in addition to their homes and offices. We want to be a part of people's daily lives. As for the coffee farmers, I want them to know that we're always concerned about their welfare," Michael says.

He says Starbucks has a certain way of doing business and that all staff follow the company's mission and guidelines.

The mission is to establish Starbucks as the premier purveyor of the finest coffee in the world and maintain that uncompromising principle as it grows. To help the staff, the company provides six guidelines: provide a great working environment and treat each other with respect and dignity; embrace diversity as an essential component of the company's way of doing business; apply the highest standards of excellence to the purchasing, roasting and fresh delivery of coffee; develop enthusiastically satisfied customers; contribute positively to the company's community and the environment; and recognise that profitability is essential for future success.

Starbucks has been in Thailand for nine years and currently operates 101 coffee houses throughout the Kingdom. It opened two new outlets last month: in Central Ram-Indra in Bangkok and the Jungceylon shopping complex in Phuket.

Michael says the company expects to grow 10-15 per cent each year.

"Our opening strategy for new Starbucks outlets is to go to the places where our customers want us to be. So we look at the three main places where they can be found: home, work and play."

In the first case, Starbucks coffee houses will be opened close to or in residential areas, where customers can come easily from home. The second location is in office buildings or working communities, where people can come from their workplace. And the third location calls for coffee houses to open in major retail and entertainment complexes, to attract shoppers and other visitors.

He says the company makes location decisions based on visibility, accessibility and presence. In this way, Starbucks outlets are like advertising billboards for the brand, while all partners behave like brand ambassadors in advertising and promoting personal connections with customers.

The philosophy has proven to be successful in an intensely competitive market. Thailand is a country with a dominant coffee culture. However, the market still has many opportunities.

"My personal mission is to make Starbucks the most admired global coffee brand in Thailand. It will also be the most admired company, for being operated with a sense of community and humanity," Michael says.

Kwanchai Rungfapaisarn

 The Nation